About this Show

Markets Now

News/Business. Business news. New.

NETWORK

DURATION
02:00:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Virtual Ch. 130 (Fox Business)

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
704

PIXEL HEIGHT
480

TOPIC FREQUENCY

Us 24, Jack Lew 15, Mattel 10, S&p 9, U.s. 8, Comcast 6, Washington 6, Apple 5, America 5, Nicole Petallides 4, Treasury 4, Charlie Rangel 4, Europe 4, Ameritrade 3, California 3, United States 3, Florida 3, Obama 3, New York 3, Christopher Dorner 3,
Borrow a DVD
of this show
  FOX Business    Markets Now    News/Business.  
   Business news. New.  

    February 13, 2013
    11:00 - 1:00pm EST  

11:00am
it was not a response. it was a campaign speech. stuart: joe biden literally wearing rose colored glasses. >> it will hurt middle-class families. >> that is why marco is such a good example. >> the president just spent the last hour demonizing success. stuart: before we move on, jack lew just addressed his cayman island accounts. he invested as an employee. he took a loss and -- >> we should feel better about the situation because he took a loss. remember president obama attacking mitt romney for his offshore accounts? come on.
11:01am
stuart: why would anybody have an offshore account? >> the taxes in this country are out of controll stuart: it is okay if jack lew does. charles: it is also okay if this president kills people with drones. [ laughter ] stuart: dagen and connell, it is yours. dagen: i am dagen mcdowell. connell: im connell mcshane. the markets are setting up for a repeat of 1987. >> today a full-time worker making the minimum wage earns $14,500 a year. even with the tax relief we put in place. a family with two kids that earn the minimum wage still lives below the poverty line.
11:02am
dagen: business owners say that will cause them to pull back on hiring. congressman charlie rangel is here to defend the president's proposal. connell: it should be a pretty good conversation. how about tim cook? dagen: you cannot post about the stock prices. top of the hour. stocks now and every 15 minutes. nicole petallides. nicole: we have pulled back. we spent a lot of time near all-time highs. yesterday we did close at five year highs. today we were in positive territory. you can see now that the dow is down about 25 points. the dollar has been moving back and forth from the unchanged
11:03am
line. that also plays into our markets overall. they talk about the global economy and things seem to feel a little bit better these days. the nasdaq composite is up about a half percentage. to your next point, i know mark father is waiting for some pullback. a lot of these traders are as well. connell: if we do not see a pullback soon, doctor farber may be saying we will look at a crash again. he joins us now on the phone from thailand. it is a pretty big pullback. >> not really. i think there are two thin areas we have to consider.
11:04am
the market will become really over bold. connell: we could see a crash. >> i think what most investors overlook is on march 6 of this year, we will be four years into the bull market. fifteen months ago, we were at 1074 on the s&p. we are up almost 50% in 15 months. we are very extended already.
11:05am
connell: i want to hear your argument for that. there have been a number of people making the case for stocks being cheap on a relative basis. i want to take you back a little while. you are author of "the doom, gloom report." we have actually gone up, not down. obviously, that surprises you a little bit. >> i am familiar with that theme because i have been through it so many times. the opposite is in march 2009, people could not see why stocks
11:06am
would move up and a year ago, and europe when reese and italy, portugal and spain, people could not see why they would go up. connell: it has, obviously, guy. if you look at other asset classes, you say to yourself, what value do i have in the bond market? not much, i better be in stocks. you say what? >> i agree that bonds are unattractive.
11:07am
they were very similar. they were not that far apart. in the 70s, stocks performed badly and bonds performed badly. they were still providing an annual term of roughly 7%. connell: give us one location real quick. >> a year ago i wrote about how inexpensive properties were in georgia, nevada, florida and in arizona. i think these properties have gone up. i do not think that that is
11:08am
cheap anymore. they are still reasonably attractive compared to equities that i find to be on the high side given that inflation flow somewhere and i think it has been mostly in corporate profits. connell: and we will checking back with you from time to time. mr. faber, thanks a lot. dagen: just a few hours after he wrapped up his date of the union address. president obama is heading the road to push his agenda. here to tell us what he thought about the speech is a republican congressman of the beautiful state of montana. name one thing that president obama talked about last night that you will get behind, well, almost 100%, but that you are in
11:09am
favor of. >> i think his comment of trying to push for some sort of immigration reform, if needed. both sides are talking about it. i come from 28 years in the private sector. i have a little difference of a resume than other folks here. i was very concerned with reckless spending. i do not see a lot of subsidized policy. dagen: the plans that he outlined, we just got word that they presented a proposal for the energy securityrust. >> i would have liked to hear him say something like, for example, how about improving the keystone pipeline.
11:10am
that creates jobs, that creates tax revenues without raising anything. dagen: he did talk about tax reform. we have to look at how we become were competitive in the global market. >> we have the highest corporate tax rate in the world. i think this scenario is hopefully able to be found on common ground here. dagen: let me throw this out there. he talked about tens of billions of dollars in infrastructure to repair our roads and bridges. would you be okay with that if it was paid for by raising the gas tax? >> infrastructure is an
11:11am
important part of you. we need to reform and improve our infrastructure, but not by raising taxes. there is plenty of money in the federal government. it is time to find ways to spend it more efficiently. dagen: congressman, thank you very much. that is not the idea that the president throughout their last night. congressman of montana, take care. thank you for being here this morning. connell: another thing we heard from the president was a shout out for apple. the company announcing plans to bring back a new factory jobs back to the united states.
11:12am
connell: let's take a look at oil. 97.45. not moving much today. we will be right back. ♪ i'm a conservative investor. but that doesn't mean i don't want to make money. i love making money. i try to be smart with my investments. i also try to keep my costs down.
11:13am
what's your plan? ishares. low cost and tax efficient. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.
11:14am
11:15am
connell: breaking news in washington today. jack lew to be the next treasury secretary. he has talked about his bank account in the cayman islands, he has addressed this tenure at citigroup. rich@is following it very
11:16am
closely. rich will join us a little bit later on this hour. dagen: it is now time to make money with charles payne. charles: monster energy drinks. there are a lot of allegations. people are dying and hospitalized. it has had a serious impact. the margins were under a little bit of pressure. relatively great evaluation. acting great today. dagen: i have one thing, though,
11:17am
the fda increasingly looks very eager to regulate the energy drink business. if that happens, even years from now, what will the impact be? charles: it depends on what the impact and regulation will be. this stock goes significantly higher, i think it takes off. i am looking for a trade. it is at a downtrend. a close above 50 would be a bicycle. dagen: thank you. i am not saying how many energy drinks i have had in one day. connell: today, for example. dagen: not today. my most consumed in a day. a dozen. a carnival of crazy. good luck with that.
11:18am
nicole: dagen, please be careful. let's talk about what is going on here. we will start off with groupon. groupon looking stellar this morning. the analysts are jumping on board. they are of pain from buys to neutrals. at 5.60, they think they have some upside potential. i want to take a look at buffalo wild wings. another name on the move. chicken wing prices, which we have reported before, have been very high. barclays have a price target of $89. the company themselves say they are energized. the analyst seem to be mixed on buffalo wild wings. some are conservative and some, you know, are worried.
11:19am
back to you. dagen: thank you. connell: not a fan of apple. we spoke about that earlier. he will have a chance to explain that next. dagen: the nomination of jack lew to be the next treasury secretary. not everyone is convinced he is the right pick. take a look at, you know, he will be responsible for keeping the dollar strong. it has not been. how strong is it today against the euro? ♪ to grow, we have to boost our social media visibility.
11:20am
more "likes." more tweets. so, beginning today, my son brock and his whole team will be our new senior social media strategists. any questions? since we make radiator valves wouldn't it be better if we ju let fedex help us to expand to new markets? hmm gotta admit that's better than a few "likes." i don't have the door code. who's that? he won a contest nline to be ceo for the day. how am i pposed to run a business here without an office?! [ male announcer ] fast, reliable deliveries worldwide. fedex.
11:21am
11:22am
so we cread the extraordinarily comfortable sleep number experience. a collection of innovations designed around a bed with dualair technolo that allows you to adjust tohe support your body needs - each of your bodies. our sleep professionals will help you find your sleep number setting. exclusively at a sleep number store. sleep number. comfort ... individualized. at the ultimate sleep number event, queen mattresses start at just $599 . and save 50% on our innovative limited edition bed.
11:23am
>> at 21 minutes past the hour, i have your fox news today. the former lapd officer is now believed to be dead after his killing rampage. christopher dorner name has been recovered. it was found in the same chart cabin where police believe dorner was.
11:24am
in vatican city, pope benedict is residing over ash wednesday. the 85-year-old says he was resigning for the good of the church. catholic churches conclave begins in mid-march. a five year old dog named banana joe one last night at the west minister dog show. it was the third attempt at the big title. congratulations. back to dagen and connell. dagen: he does not quite look like a dog. i took a picture of him. he is a german read from the netherlands. he speaks several languages. he is a super cute pooch.
11:25am
he looks a little humanlike and has humanlike qualities. connell: we bring in our next guest to tell us to stay away from apple. the chief trader at ace investment strategist. why don't you like apple? >> well, no doubt apple is a good company. they have great products. they have a lot of cash on hand. all of that is old news. tim cook, the ceo of apple came out and said that project under product management is still there.
11:26am
maybe we want to hear about the itv sales. connell: we have been waiting forever for the television. we thought the integrated television and theebook about steve jobs that we would see it. >> i think that totally has not gone away. it definitely has subsided. it is more than the passing of steve jobs. in order for it to be the so-called super growth stock it needs to come up with that.
11:27am
if not a super growth stock. connell: you are not saying to sell it, you are just saying do not be a buyer now if you do not own it. >> apple dropped to 435 now. can it be up ten-20% over the next few months? yes, sure. twenty months later it will be fantastic. connell: we appreciate it. thanks a lot. we will talk to you soon. dagen: thank you banana connell. [ laughter ] connell: what kind of name is that? dagen: free trade with europe. it could cost us jobs.
11:28am
connell: jack lew making his case to be the next treasury secretary. and we will keep an eye on the market. we are below on the dow. here are some individual winners on the s&p 500. ♪ with fidelity's new options platform, making it easier to try filters and strategies... to get a list of equity option.. evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens and i helped create fidelity's options platform. it's one more innovative reason
11:29am
serious investors are choosing fidelity. now get 200 free trades when you open an account. otherworldly things. but there are me things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪
11:30am
11:31am
dagen: the good and the bad of free trade with europe. the ambassador is here to talk about it. so is charlie rangel. he will tell us how the
11:32am
president plans to raise the minimum wage without hurting job -@creation. the cyber threat facing our nation and the president order. judge andrew napolitano tells us what this means for your rights and privacy. i am very excited. my parents ran a small business. i can tell you firsthand what raising the minimum wage does. connell: let's go back to nicole. comcast is a big story today. nicole: a big story on the street today. comcast and general electric are hitting highs. this is the deal. comcast gets to move in and buy the remaining stakes that they do not already own. they are going to buy the entire 49% of common equity of the joint venture.
11:33am
they realized how well it was going. we solve comcast come out. they see their stock at a new annual high they have not seen since 2008. back to you. connell: nicole, thank you. an agreement to a least launch talks of a free trade deal. we have the european union ambassador to the u.s. with us now in d.c. we will approach this or at least try to from the perspective of the united states and what it means for u.s. jobs. what is in it for us? >> there is a lot for americans and there is a lot for europeans.
11:34am
i think this means more jobs, more growth through increased trade and investment on both sides of the atlantic. this is the name of the game. we are talking about the biggest economic bloc in the world. connell: right. there is already a ton of trade. this is already happening. what would the big change. >> the change is clear. we want to reduce tariffs. we want to reduce nontariff barriers. we want to bring things that do not make sense. we put ourselves in a very strong position as regards to a merging economies. we can have increased leverage over the way the globalized economy is organized. connell: now, when ms. similar
11:35am
type discussion was taking place in the 90s, when they were talking about nafta, the same arguments were made. after it had been in place, some people came back and said we did not really get all that we bargained for here. some said there were jobs lost and not gained. >> everybody will be fighting for their own points. this will be a recovery booster. it will be easier to have business operating in the two markets. we are talking about 800 million consumers.
11:36am
european economies are still not in the best shape, not that we are necessarily going great ourselves. europe has been a real mess over the years. >> this is again a win-win. i listened to president obama last night. transatlantic trade is creating millions of jobs around the atlantic. we believe they can create even more. open markets bring down nontariff barriers and addressing some issues that our friends in china, brazil and india need to be very offensive to. connell: eu ambassador to the u.s., thanks a lot. dagen: jack lew's confirmation hearing underway. he is facing some heavy scrutiny
11:37am
for his time spent. connell: rich edson is following this for us on capitol hill. rich: president obama pointed out that romney's time as a banker. all of that. also, jack lew's pay at citibank. >> in 2008 i was in employee in the private sector. i was compensated for by work. i will leave for others to judge. rich: that is something that republicans are calling hypocrisy. jack lew is saying he would like to get both individual and business tax reform done.
11:38am
republicans have been floating at the corporate side at 25%. it would be challenging to get there. he would like to, on the individual side, raise some revenue. he says he is looking forward to working with lawmakers on overhauling both the individual and corporate tax codes. something that will probably take an awful long time here. dagen: thank you. rich edson in washington. connell: we have charlie rangel coming up. you probably heard the president talking about a higher animal wage. we will hear from charlie next. dagen: a challenge to your right of privacy. judge andrew pollack on zero on cyber security. take a look at the treasury market. ♪ all stations come over to mission a for a final go.
11:39am
11:40am
this is for real this time. step seven point two one two. rify and lock. command is locd. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers.
11:41am
>> i am lori were often with your fox business brief. one of the companies is cisco systems reporting after the bell. it has been on a bullish one since the last earnings report. meantime, after leaving the u.s. market back in 1995, u.s. fiat viewership will have a chance to sell the sports carrlater this year. they make the world debut next month. it will be available in the fourth quarter. they'll push for an all-time high stalled with some selling on wall street. those are your latest headlines from the fox business network. of course, we are here to give you the power to prosper. ♪
11:42am
11:43am
>> tonight let the player in the wealthiest nation on earth, no one who works full-time should have to live in poverty. let's raise the animal wage to nine dollars an hour dagen: joining us now is charlie rangel. always terrific to see you. they buy food, they buy
11:44am
clothing, they buy things that really small businesses live on. when that happens, though small businesses can hire more people. if people do not have the money, if people are living below the poverty line, hey cannot buy. the ability to make certain that we have people that are consuming goods. dagen: on the flip side of the job creation argument, there has been much research done that shows when you raise the minimum wage like that it actually hurts job creation among lower skilled workers. the businesses cannot afford to go out there and do that. >> it is true that we hire a lot of people that the minimum wage
11:45am
are competing against undocumented workers. you never hear the people that are at the poverty level complaining about increases in minimum wage. we do know that money will be spent. unless you really work out there each and every day and come home and you are still poor, it just seems to me that is not a worthwhile argument. the fact of the matter is, ceos have had a record breaking explosion in terms of the billions of dollars they are making. dagen: congressman -- >> they just have not kept up with it. dagen: coming from a family that ran a very low margin small business, the alternative when
11:46am
the minimum wage was increased was always either cutting peoples hours or laying at least one person off. >> i really do not believe that evidence is clear. if we had this argument, you never would have a decent wage for people. every time you try to improve the working conditions, whether we are talking about sick leave, whether we are talking about vacation time, it is always a question if i have to pay more, i will fire more people. in america, nobody should work each and every day, 40 hours a week and at the end of the day they are living below the poverty line. dagen: i will put it to you this
11:47am
way, president obama ran on this issue in 2008 and suggested raising the minimum wage to $9.50 an hour. if that was such a great idea and job creator, why didn't he do it in the last term? >> we have been through a crisis. i think you have to agree that the conditions he inherited have dramatically improved over the last four years. people are looking at buying homes again. we are on the right track. i think we should give this an opportunity. dagen: if it was going to help the economy and job creation, why didn't the president pushed for it in the last four years? >> i guess we could spend a whole afternoon wondering why the president didn't do a whole lot of things. the real question here is do you think in the united states of
11:48am
america people work 40 hours a week and are below the poverty line. do you think that is fair? no, it is not fair. people have to decide if working is worthwhile doing if you are not able to take care of your family. dagen: i will give you the last word. i will say nothing more than thank you for being here. we will see you soon. thank you for being here. connell: we will follow up on that issue. stocks now. nicole petallides. nicole: let's take a look at some of the companies that paid their workers minimum wage. you may think of names such as mcdonald's or your friends. best buy would be another one.
11:49am
if you talk about raising it, that would be great for the people that work there. the higher among wage, that would really burden these companies and job creators and small businesses. here is a look at some of the publicly traded companies. back to you. connell: nicole, thank you. dagen: judge andrew napolitano said the government is using it as an excuse to infringe on your privacy. connell: first, let's take a look at the winners over on the nasdaq. ♪ [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ]
11:50am
♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ from td ameritrade. ♪ (train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, innite possibilities.
11:51am
11:52am
11:53am
connell: our friend the judge coming up in just a moment. dagen: he is our friend. maybe the only one. connell: president obama quite active on security. dagen: peter barnes is in washington with more on this. peter: the president pushing for a unified public-private defense program. they are targeting the nations critical infrastructure. recent cyber attacks against the washington post, "wall street journal" and twitter helping to elevate these problems. to get the ball rolling, the new executive order would allow government intelligence agencies to start sharing more information with companies. >> we know that the amount of private sector information that
11:54am
is available with respect to cyber security threats could dwarf with what the government could provide. >> the administration says it will also need cyber security legislation from congress to make this united effort even stronger. dagen: thank you, peter. connell: let's go to the judge now. i love peter. let talk about more what this means with the judge. >> i love being here with both of you. connell: everyone that comes in here tell us this is a big threat. we have to do something. are you worried about it? >> yes. i am worried about it. ronald reagan once said nine most of -- we are going to share
11:55am
our information with you. we are going to help you by telling you what we know. that is the beginning of the end. the internet as we know it today in 2013 is the freest archetype for ideas the modern world has ever known. it can take care of itself. if the chinese attacked the "new york times," the "new york times" know how to resist it. the government will not be able to resist the temptation. can the president do this on his own western mark know. he can start a relationship between private industry and the
11:56am
government. once the door is open, it will not close. dagen: are the executives smart enough to know that they cannot get in bed with the government? >> let me tell you what happened with national security agencies spying on the bush administration. they said we want to listen to telephone calls and we do not have search warrants. we want you to give us access to your hardware. we will give you legislation to protect you. four of them said yes and one said no. about two months after the one said no that the chair of that company was indicted for insider trading having nothing whatsoever to do with this. he was convicted and serving eight years in jail. the bush administration decided
11:57am
to play even with somebody that would not play ball with them. connell: i am not even saying this, i am more worried about a hacker coming after me than my privacy. >> most respectfully, you are probably not a target of a hacker. [talking over each other] dagen: they are not worried about it until they are. >> you can take care of yourself and your internet provider can provide you with the software you need to protect yourself without the government knowing what you are saying in those e-mails at three in the morning. [ laughter ] dagen: thank you, judge. connell: thank you very much for that. we are not done with this topic.
11:58am
dagen: markets now we'll be right back, everybody. ♪
11:59am
12:00pm
12:01pm
sandra: i am sandra smith. dennis: i am dennis kneale. the dow taking a breather raise investors take some profit but we have a blockhead, bulls joining us with differing views how bullish you ought to be. sandra: president obama taking the road trip after the state of the union. he is at north carolina in a factory to sell his agenda. one person who is not sold, senator and paul. he delivered the tea party response last night. he says the president's plan is dead on arrival and congress--he will be joining us live. dennis: a long-running battle over the creation of the doll, the ceo of bratsmaker with us.
12:02pm
sandra: time for stocks now, nicole petallides on the floor of the stock exchange. market's taking a bit of a top. the dow, lows of the session. nicole: we are selling off. we have seen the dollar going back and forth, the fear index to the upside. dow 14,000, not looking at that now, 13,963. these are volatile markets, they go back and forth but we are pulling back, down 1/3%, the drug index and the bank index two of the reasons we are pulling back, bank stocks hit 52 week highs like goldman sachs and citigroup pulling back. that is why we are not able to take out. i want to look at dean foods weighing on the s&p 500, the s&p is lower, down about 9% today, think of milk producer, been food cannot with their numbers and basically the fourth quarter
12:03pm
profit is $0.22, $0.27 a share. that is their outlook, they talked about significant customer losses, sold off their sleigh silk units, so they have a lot of things they are juggling and forecast a little weaker than expected the shares over the last year have been good, 65%. dennis: the averages are down this afternoon but stocks covering your their highest level ever. can the bulls keep running? we have john heitor from raymond and kevin carup one of cycle nicholas. let's start with the baby bull, telling what you like. >> our evaluations reasonable compared to bonds? our target for the s&p is somewhere between 1550, and 1600
12:04pm
by the end of the year, the economy continues to expand. we like the market fundamental. we recognize the market has gotten a little ahead of itself in the short run. january was very good. audit q e inspired buying of risk assets through the spring, we wouldn't be surprised to see a little bit of a pull back and the fact that earnings growth is flat, an advantage to companies that are growing more slowly but consistently. that is the focus going into the year. dennis: the s and p around 1500, 1550 to 1600 but you say we said the bidding at 1600 or 1700 by year end. >> i believe even though the recovery is plodding along it will continue to plod along. we're looking at earnings in the s&p of 13.5 which compared to the incredibly low interest rates we are in right now tells us that there is a lot of room
12:05pm
to grow and if you look at the data points coming in whether it is corporate earnings, employment numbers, construction numbers, gdp, which has been revised for the fourth quarter, we think that points to a very big year in the equity markets, certainly not a straight line. we are going to have some pullback. we just think it is difficult to time exactly when those the going to occur. dennis: the real economic data, joe appears to believe the recovery is for real and stocks reflect that. are you concerned that stocks are disconnected from reality, economy lows and stocks going up anyway? >> to a certain extent we have redefined what reality is. remember so much of this recovery of rear the last four five years push this into uncharted territory. you never had a situation in recent history where you had such a large deficits in the
12:06pm
public sector financing rebuilding balance sheets in the private sector which include corporate profitss as we go into the year the house is not on fire anymore, the financial market has stabilized, the state of the union pointed out the improving economy and it gets harder to run those deficits as evidence that the economy is getting better. alternately as we go through the year this debate about bringing in those public deficits could weigh on the private sector and might further flatten out or even injured profits it is not done right away so it is important to watch that. is still a risk factor that you have to think about. dennis: we keep overcoming every stumble. fourth quarter gdp comes out of the kline and i thought we would worry about the recession, stocks still going. how much of the stock rise is because things are so good versus just because we 3 crises are off the table, u.s. government shutdown. >> it is a love both and, what
12:07pm
are the alternatives, basically zero% interest rates in the short term, 2% on a ten year. that is part of this. but i think we are fundamentally strong. there is certainly a risk factor, a am not suggesting there isn't. i look at it the other way which is if washington can get out of the way of our economy and free enterprise i think it is a positive assuming they don't screw up as they begin to withdraw public funds from the private sector. dennis: where would i put extra money right now? >> i like emerging-market. i think they are particularly in well-positioned for the u.s. investor and i do think because of our trade deficits or borrowing deficits u.s. dollar
12:08pm
will weaken, we favor large caps over small caps. dennis: thank you very much, appreciate your being here. sandra: president obama is about to talk to a crowd of factory workers in actionville, n.c.. dennis: is pushing proposals that he introduced in his state of the union speech last night, rich edson joins us from capitol hill with the latest. rich: this is the factory with heavy-duty and driveline compounded many factors, white house says expanded jobs over the last couple years and the white house is saying to the president's program he announced last night they could create more jobs, $1 billion in government spending to create these economic and manufacturing partnerships as part of a six weeks for the president will be on pushing what is a promotion of increased spending of the economy. >> now is not the time to get
12:09pm
these job-creating investments in science and innovation, now's the time to reach a level of research and development not seen since the height of the space raise. we need to make those investments. rich: part of it is avoiding spending cuts known as the sequester. republicans have been discussing that today, john boehner calling for the president to lay out a specific proposal on the sequestered. >> the sequester is bad policy, taking a meat axe approach to cutting government spending. that is why the president ought to be forthcoming with a plan to replace his own sequester. rich: the white house has spoken about raising taxes on the wealthy and other government spending cuts, john boehner says he will be meeting with harry reid later this week to talk about this. dennis: a reminder, we got the guy who delivered the tea party response to the president last
12:10pm
night, senator rand paul coming up in 20 minutes. sandra: president obama giving apple founder tim cook a big shot out at the state of the union, the company announcing its plan to bring back manufacturing jobs back to the united states and this may seem encouraging, the michigan manufacturing technology center estimates it will only create 200 jobs. shares of apple shared 10% of their value over the last month up slightly in today's session, $468 a share. dennis: the nightmare is not over for the 3,000 people aboard the carnival triumph, the disabled cruise ship being towed to alabama after suffering a fire that caused it to lose power. the ship left galveston, texas last thursday with 3,000 passengers and 3,000 crewmembers. the fire broke out in the engine room sunday morning when the ship was 150 miles off of the coast of the yucatan peninsula. that caused it to lose power and remain adrift at sea.
12:11pm
anyone ever heard of backup? the 820 foot ship is being towed to port in mobile, alabama. no power on the ship means no light or air conditioning and a small percentage of bathrooms on the ship are still functioning can you can't get off. conditions are described as horrific and sickeningly some passengers reported the orting food and others waiting in line for hours for meals. expected to report today or tomorrow, the sooner the better. they are on vacation. they get a vacation from their vacation. sandra: fireworks at confirmation hearings for jack lew as treasury secretary, we take you live to the hearing. dennis: they are not playing around, the ceo of mca entertainment on a long-running battle with barbie and mattel. sandra: take a look at oil.
12:12pm
12:13pm
12:14pm
todn important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starti unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers.
12:15pm
sandra: stocks every 15 minutes, team coverage. dennis: phil flynn on why o.j. will cost more, charles payne showing us how to make money working on a railroad. chris nicole petallides with the dow off of its low. nicole: a nice cup of of a day. the dow is up off of the lows of the day, down 55 points, down 46 points. and you can see the s&p with gains of 1519 and the s&p and the dow closed at five year highs so that is they were led -- consumer stocks doing very
12:16pm
well. hitting all-time highs, 52 week highs, seeing a mixed bag, names like mcdonald's and coca-cola under pressure and bank of america and general electric and comcast g e doing better. and a little back and forth off of the unchanged line, but there is action to the hat on wall street. that is the latest year. what is going on in chicago? phil: looking at warranty futures, a new high for the year and to be honest florida's orange juice industry is a major trouble right now. bottom line here, the citrus that causes -- fall off of the trees before they can harvest it. and add to that dry weather and colder than normal weather, a situation, orange juice futures are on fire and it could go a lot higher. this is a story that is not going to go away.
12:17pm
back to you, this could be very serious for the future of florida oranges for many years to come. sandra: star of spain has a stock that will put you on track. charles: a hundred-year-old rail, you are chasing this stock if you buy it, the action is amazing. compound growth since 1996, we don't think about it that much, these growth engines and they have cold, metallic -- drivers for this amazing, agriculture, chemical, the housing market coming back, motor vehicles, crude-oil, you will like this, crude oil up 31% offsetting the bad stuff. they gave guidance for this year, every quarter stronger than the previous quarter, strong growth, every quarter beat the year over year quarter
12:18pm
by a larger margins of the first quarter they think will make $8 million more than a year ago in and exported $32 million and it goes on and on. they are shipping oil in barrels. you would think a pipeline might be more efficient. dennis: why is there a need for a smaller independent rail? why hasn't it been bought by norfolk southern or one of the big rail companies? charles: there has been some amazing consolidation, genesee wyoming is one of my favorites, kansas city southern, they both could have been acquired the last we far or five years and has not happened. they have access in australia which is a nice commodity. sandra: no mention of the keystone pipeline by the president last night. that is probably pretty bullish for the rail industry because they continue to ship that stuff around the country. charles: the stock is up huge trading at 17 and i think long-term investors should take a serious look at this. sandra: he delivered the tea party response to the state of
12:19pm
the union, senator and paul will be joining us in moments. dennis: nomination of jack lew as treasury secretary, not everyone is convinced he is the right choice. perhaps they just don't want to have his whack the signature on our dollar bill. we will bring you the latest. he is going to have to change it. sandra: how is the currency sailing against the u.s. dollar? it's a new day.
12:20pm
if your a man with low testosterone, you should know that axiron is here. the only underm treatment for low t. that's right, the one you apply to the underarm. axiron is not for use in women or anyone younger than 18. axiron can transfer to others through direct contact. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied
12:21pm
as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. repo these signs and symptoms to your doctor if they occur. tell your doctor about all medical conditions and medications. do not use if you have prostate or breast cancer. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or paful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. see your doctor, and for a 30-day free trial, go to axiron.com. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams.
12:22pm
go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law oyour side.
12:23pm
>> 21 minutes past the hour, your fox news minute. at the vatican pope benedict telling worshipers he is resigning for, quote, the good of a church, presiding over ash wednesday services, stepping down at the end of this month. lapd has no firm time line when the body believed to be suspected cop killer christopher dorner will be identified. the associated press is reporting california driver's license with christopher dorner's name was recovered in the same side cabin where police found a body they believe is his. comparing the use of bronze to apartheid. nobel peace prize laureate
12:24pm
saying he is, quote, deeply disturbed than one drone strike against americans might give judicial reviews. and dehumanized victims and perpetrators, president obama's decision to approve todd and killing of suspected terrorists, quote, friends to undermine your moral standards and york humanity. take a look at headlines making news, back to sandra and dallas. sandra: jim nabors -- jack lew's confirmation hearing before the fed data set of financial services committee, the proceedings not been without some fireworks so far surrounding jack lew's connection to citigroup. >> explain why it might be morally acceptable to take $1 million out a company that was insolvent and about to receive $1 billion of taxpayer support. >> in 2008 i was an employee in the private sector compensated
12:25pm
in a manner consistent with the work that i did in the industry, and compensated for my work. i will leave for others to judge. sandra: mark, your response to the question on citigroup and the compensation jack lew receive the. >> asking a policy question, a policy response. i will give jack lew credit to dodge the question talking about himself in his own compensation, and fundamentally what senator grassley is talking about is sound policy, these are the policies of the government, this is your behavior and the president's comment. can you tell me if those things are consistent or not and completely dodged the question. certainly disappointment but he'd accomplished what he wanted to win pointing out the hypocrisy of these positions.
12:26pm
sandra: you are talking about nominating jack lew as treasury secretary when he was at citigroup. the ceo of the two units that the volcker rule would be to implement that role to separate the traditional from the nontraditional banking industry. is added to as i say not as i do to impose that rule on the bank? >> alike putting the fox in charge of the henhouse. as you mentioned he spend that time running the alternative investments at citibank and crassly's question, you took huge compensation, you knew the company was taking a bailout. why didn't you do the right thing and work for dollar or do some sort of public service? i think senator grassley was successful illustrating the hypocrisy under all of this, jack lew is correct in responding he is not tim geithner, he paid his taxes and played by the rules of the game. i would have liked jack lew at
12:27pm
least to say i played by the rules of the game, i agree the rules of the game were read, the rules of the game were broken, let's change the rules but you didn't get that response either. it was a dodge of his own responsibility and more importantly didn't give us any insight on what he's going to push for policywise. sandra: he had funded the cayman islands account which obama attacked mitt romney for and he said this was money that was part of a fund, don't know why it was invested but i took a loss. do you think this is enough to derail his confirmation? >> said the won't be. i thought it was shocking, his response where he essentially acted as he never heard of the cayman island funds, probably acts like he couldn't locate it on a met. when senator grassley talk about the building and i don't know about that, never heard of that, how could he not have been prepared for those questions? he just chose not to answer
12:28pm
them. unfortunately, i think despite some tough questions co-manage not to answer any of them. he got some tough questions even from the democrat side. mary cantwell asked him about glass-steagall and other things but he dodged most of this and pretty close to 60 votes. i give the administration a lot of credit for being smart, giving pete domenici to do the introductions, everybody on the bias was getting curious at that point and it really did move us toward he is a bipartisan deal cutter and we will get all this. he played this quite well and fortunately so i think he has 60 votes for good or bad. sandra: you got the last word, thanks for joining us. dennis: he said the state of the union plan is dead on arrival in congress, we are joined by senator rand paul to go over the tea party response last night. sandra: bbats, i am not talking
12:29pm
about you, not playing around all. long-running batter -- battle over copycat dolls, the ceo of the company coming. dennis: look at today's s&p winners and losers. (announcer) scottrade knows our clients trade
12:30pm
a invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their ick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company." >> announcer: you never know when, but thieves can steal your identity and turn your life upside down. >> hi. >> hi. you know, i can save you 15% today if you open up a charge card account with us. >> you just read my mind. >> announcer: just one little ece of information and they can open bogus aounts, stealing your credit, your money and ruining your reputation. that's why you need lifelock to relentlessly protect what matters most... [beeping...]
12:31pm
helping stop coks before your identity is attacked. and now you can have the most comprehensive identity theft protection available today... lifelock ultimate. so for protection you just can't get anywhere else, get lifelock ultimate. >> i didn't know how serious identity the was until i lost my credit and eventually i lost my home. >> announcer: credit monitoring is not enough, because it tells you after the fact, sometimes as much as 30 days later. with lifelock, as soon as our network spots a threat to ur identity, you'll get a proactive risk alert, protecting you before you become a victim. >> identity theft was a huge, huge problem for me and it's gone away because of lifelock. >> announcer: while no one can stop all identity theft, if criminals do steal your information, lifeck will help fix it, with our $1 milli service guarantee. don't wait until you become the next victim. you have so much to protect and nothing to lose when you call lifelock now to get two full months of identity theft protection risk free.
12:32pm
that's right, 60 days risk-free. use promo code: gethelp. if you're not completely satisfied, notify lifeck and you won't pay a cent. order now and also get this shredder to keep your documents out of the wrong hands-- a $29 dollar value, free. get protected now. call the number on your screen or go to lifelock.com tory lifelock protection risk free for a full 60 days. use promo code: gethelp. plus get this document shredder free-- but only if you act right no call the number on your screen now! cheryl: bottom of the hour. stocks now, nicole petallides live from the new york stock exchange. nicole: netflix, a real winner. up aeros today, about 3% or so. that only represents today.
12:33pm
up over 100% year to date. today's move can be contributed in part to an analyst call. jpmorgan loving netflix. the new price target $205 up from 180. they have an overweight rating on netflix. trying to beef up the content, what kind of streaming video and television shows they have available to subscribers. working very hard. we have seen netflix on a tear. up about 190%. a very stellar performer. sandra: a huge comeback. dennis: it was 300 in july. sandra: worth mentioning. >> let's declare in the wealthiest nation on earth no one who works full-time at should have to live in poverty
12:34pm
and we want to raise the minimum wage to $9 per hour. dennis: elizabeth macdonald has looked into what an increase would mean for business. the business community says it is a job killer. liz: yes, it is. it is really politically divisive. we have the retail federation diseases, national small business association out in full force today on the internet blasting away say this is a job killer. the other side of the debate says this is what mitt romney wanted, mitt romney had proposed this. we have three of the four women in poverty are minimum-wage workers. an antipoverty measure, all about income inequality, and the president said 19 states have already raised the minimum wage, why doesn't the federal government do it? dennis: they have. it cost job because those who
12:35pm
may have gotten minimum-wage, now they can't afford to hire the extra position. it has always been largely a political fix, doesn't help the economy. liz: we look at the studies, they drop on both sides of the aisle. you didn't see the employment rates go up, and essentially saying we have a jobless rate that is being held up higher by minimum wage hikes but the studies aren't proving that either way. could it be the overall downturn in the economy? sandra: 24% hike. liz: you have to say why not $25 per hour? why should the government be stepping in. dennis: thank you very much for being with us. senator ran rand paul offeringa
12:36pm
simple solution to the debt problems. common sense. >> we have to work together or we will never fix our fiscal mess. bipartisanship is not worth missing in washington. common sense is. trillion dollars deficit hurts us all. printing more money just feeds the never-ending appetite for spending and hurts us all. dennis: joining us now, republican senator rand paul of kentucky. i will start you off with a chance to make your own mark twain quote. i have a feeling maybe the tea party had fizzled and was on its way to dying. what do you have to say about that? >> the tea party has been out there for a couple of reasons, we are equal chastisements to both parties in they have to learn we have to cut spending and give up on our sacred cows. i was particularly insulted by the president last night saying he cut the deficit by
12:37pm
$2 trillion. what planet does he live on? adding $6 trillion to does, what did he do? he saved us 2 trillion? it is absurd, i am surprised people don't challenge him on this. dennis: to your credit you attack both parties as being a part of the spending problem but in terms of trying to get something done inside the senate, are you offending republican colleagues who need to work with to reach compromises? >> not necessarily. if you talk republicans, they will acknowledge in the bush years there were a lot of federal programs added. it has gone up exponentially, and we have addressed the problems because we're getting dangerously close to the point of insolvency. most of my colleagues are with me on this, we do have to cut spending, we have to get started on this. i don't think you'll find a lot of disagreement from the colleagues on this. dennis: they are never talking about eliminating it, they will
12:38pm
spend more than they take in every year. you say congress is debating the wrong thing, explain, please. speak a lot of times we're talking about slowing down the rate of growth in the government, that is all the things. polling their hair out, it doesn't even cut any spending. slowing down the rate of growth, but government will still grow by $8 trillion, seven to $8 trillion with growth of government with the sequestered. the sequestered is not even enough to stave off another credit downgrade, which i think we will get unless we really, truly start balancing our budget. dennis: it had absolutely no impact to the downside for us, 10-year treasury is actually lower than before when they should have gone up. we were recovering from the great depression.
12:39pm
they were spending too soon in worrying about it, making business pullback, making stocks plunge 50%. is there any chance we got religion too soon on spending now? it is hurting business confidence. >> i don't think we got any religion on spending, we haven't cut any spending. we are not in danger of doing anything to the spending side that would hurt the economy. that is an old keynesian argument that it could be increasing the wealth of the country. it is an illusion, causing mal investment. placed in things the government chooses, not things that the government wants. in any way would hurt the economy, think it would help the economy. imagine what the stock market would do if we were going to fix entitlements permanently. the stock market would rally to that. dennis: we are on the way, hope. thank you for being with us, senator rand paul. >> thank you.
12:40pm
dennis: a bottle of wine, food on the vine. how they're making money financing winemakers and small business, big ideas, coming up. sandra: long-running battle over the creation of dolls. dennis: first, take a look at the 10-year treasury. [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense.
12:41pm
from td ameritrade. did you know not all fiber is the same? citrucel is different- it's the only fiber for regularity that won't cause excess gas. it's gentle and clinically proven to help restore and maintain regularity. look for citrucel today.
12:42pm
adam: i'm adam shapiro with your fox business brief. read his plan to cut 2500 jobs this year they continue to cut costs for the larger overhaul. obviously spend $100 million in government cost mostly in the first quarter. majority of the cuts will take place in the finance and research division. toys "r" us announced to be done as chief executive but remain chairman of the board. after lackluster results in the all-important holiday season. toys "r" us will start looking. burger king is doubling the size of its coffee lineup. fast food chain rolling out for new iced coffees and drinks next month. that is latest from the fox business network giving you the powwr to prosper.
12:43pm
12:44pm
sandra: my next guest offers an alternative to winemakers looking for capital, but don't really want to go the normal route of going to the bank. joining me now for "small business, big ideas." cofounder and managing partner. thank you for joining in on this. this is a fascinating story because everyday we are talking about how this is harder and harder to get loans. are you offering an alternative when a winery wants to grow? >> thank you for having me on. very private equity fund whose focus is the wine space and in particular wineries. private equities are supposed to and not always does. the owners, phones, winemakers needed more capital usually to
12:45pm
grow and expand. they're tapped out because the banks in this situation have a formula and if you're under that formula, you're out of the box. we provide something different. we back entrepreneurial, talented, passionate winemaker. california, oregon, washington perhaps. sandra: in what sort of range? >> millions of dollars. sandra: you already established a pretty interesting partnership. >> love to partner with these owners-founders. sandra: give us an example. >> we will talk about this in a minute. there is an oregon pinot. a big follow on investment. and some chardonnay, award-winning winemaker in the
12:46pm
central coast of california. sandra: how is it going so far? >> it is great. last week at about 14,000 cases, this year we are planning to grow. ed is a third-generation californian winemaker. he started his own family vineyards. he needed capital to grow, he could not get enough from banks and we stepped in, making significant equity investment. sandra: the payoff for you has been great so far. >> private equity wor working te way it is supposed to work, we have freed up ed. sandra: a family owned business, following in his father's footsteps, it is a great story. >> we're allowing him to make and sell fabulous wines.
12:47pm
sandra: is the trend of the wine industry overall, would use a? >> people are still drinking. i would say some price points came down with the bottles they buy. sandra: but you found a niche. >> absolutely. sandra: it is tough to get a loan right now. peter, thank you for joining us. dennis: wine is a way to get past recession. stocks every 15 minutes. nicole petallides at the floor of the new york stock exchange with a look at the days movers. nicole: we have been very busy talking about some of the hot stocks, so let's start off with amazon and cbs. expanding the cbs content made available to amazon prime video streaming service.
12:48pm
cbs down 1.25%, amazon a winner, a gain of 2.7%. i wanted to take a look at yahoo and facebook. the ceo talking about the fact mobile applications focusing on that, ties to facebook and work on turnaround efforts. she has been focusing on that a lot. facebook 27.92. yahoo is a winner. and deere coming out weaker than expected forecast, down 3%. dennis: thank you, nicole. time for your media minute. comcast getting kaki. the cable giant $16.7 million bid to buy the stake ge holds comes two years after it bought 51% control. comcast shares surging up as much as 8% today. that stock up 50% overall in the past year.
12:49pm
comcast paying a pretty sum on the back half pound for pound paying 26% higher price than comcast paid for the first half. some $12 billion on the price tag in cash adding to the spider, comcast raising its dividend 20%, buying back $2 billion in stock in the coming year, so why buy now? he could have waited up to seven years to buy the rest, but he is buying now because the price will only go up later. comcast has done pretty well, paying top dollar just as the internet threat looms. wall street loves a deal, but that it loves aol, time warner two. sandra: and they are not going around. a long-running battle with mattel. dennis: and barbie. a look at the winner at the westminster kennel club. and a look at the winners on the nasdaq.
12:50pm
to grow, we have to boost our social media visibility. more "likes." more tweets. so, beginning today, my s brock and his whole team will be our new senior social media strategists. any questions? since we make radiator valves wouldn't it be better if we just let fedex help us to expand to new markets? hmm gotta admit that's better than a few "likes." i don't have the door code. who's that? he won a contest online to be ceo for the day. how am i supposed to run a business here without an office?! [ male announcer ] fast, reliable deliveries worldwide. fedex. [ male announcer ] fast, reliable deliveries worldwide. but that doesn't mean i don't want to make moneyestor. i love making money. i try to be smart with my investments. i also try to keep my costs down. i try to be smart what's your plan?ents.
12:51pm
ishares. low cost and tax efficient. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call-800shares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.
12:52pm
12:53pm
dennis: let's talk golf, the nine-year legal battle between toy titans et al. and mga entertainment. corporate espionage, copyright infringement, stolen trade secrets involving the very popular bratz dolls. largest privately held toy company in america as the toy fair is coming to new york. a quick back story. mattel toys designer working on his own time builds you guys in
12:54pm
coming up with his other invention, bratz dolls. he made them at home. 2004, mattel sues. and then the appeals court throws it out. a second trial, you guys went $309 million, and now an appeals court throwing that out saying he can pocket the legal fees but you will not get the rest. and now a second trial to get the rest. why don't you just settle with mattel? >> we are continuously going to pursue legal rights against mattel. it cannot be a leader of the toy industry and just steal from your competitors and get away with it. we have the proof they have 14 page written document. dennis: it is really different
12:55pm
from barbie. a frequentl freakishly large heo have very small lakes. have you offered this designed originally to mattel and they said no, i don't want that? >> he did this in 1998, the design, just the drawing on his own and he wasn't even working at mattel. and then he goes to mattel, get the job, start working there. dennis: it is better to love than fight, but are not going to court forever, why not settle this thing? >> it takes to love, takes two to tangle. we don't want to fight. dennis: when i sell yourself to
12:56pm
mattel? >> everything is available for a price. dennis: thank you for being with us. from bratz, good luck with mga. sandra: making the rest of the field barking mad. affenpinscher banana joe has come out the leader beating out in old english sheepdog. the shiny black coated po dog is five years old and speaks apparently for languages according to his owner. the wind is banana joe 86 best in show. dennis: i'm still waiting for national cat show. sandra: it was supposed to be a big dog year. dennis: tomorrow live from miami, cheryl casone on the
12:57pm
flight from wall street and how taxes are driving number of money managers south. we brought you both bull and bear arguments over the last two hours. up next, you will hear what international place of makeup for any weakness in stocks. sandra: talking to former security secretary about president obama's cyber security plan. judge napolitano says your privacy rights are at risk. we will see treasury secretary michael chertoff agrees. , anne.
12:58pm
how are you doing? hi, evelyn. i know it's been a difficult time nce your mom passed away. yeah. i miss her a lot, but i'm okay. wow. that was fast. this is the check i've been waiting for. mom had a guaranteed acceptance life insurance policy through the colonial penn program, and this will really help with the cost of her final expenses. they have been so helpful and supportive during this time. maybe i should give them a call.
12:59pm
i really could use some more life insurance. ist affordable? itosts less t that's pretty affordable, huh? less than 35 cents a day? that's less than the cost of a postage stamp. so, you said it was guaranteed acceptance? yes. it's permanent coverage with guaranteed acceptance for people ages 50 to 85. there's no medical exam or health questions. you can't be turned down because of your health. it fit right into mom's budget and gave her added peace of mind. you should give them a call or look them up online at cpdirect.com. i definitely could use more coverage. i think i will give them a call. man: are you between the ages of 50 and 85? or know someone who is? do you think that quality insurance at an affordable rate is out of your reach? for less than 35 cents a day, you can get guaranteed acceptance life insurance through the colonial penn program. you cannot be turned down because of your health. there are no health questions or medical exam. your rate will never go up, and your benefit will never go down due to age--